How market research supports the new product development process
A Beiersdorf case study

Page 1: Introduction

Market research is the process by which businesses find out about customers' needs, wants and desires. It makes possible the successful development of new products. This study shows how an international company, Beiersdorf, combines market research with new product development on its NIVEA Deodorant brand to provide exciting new products that better meet consumer requirements.Beiersdorf has a...
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Page 2: The key stages of market research and new product development

Market research involves the systematic gathering, recording and analyzing of data about customers, competitors and the market. This links marketers to consumers by supplying essential information to solve marketing challenges and help with marketing decisions.Market research helps a company create and develop an up-to-date and relevant portfolio of products.Creating new productsBeiersdorf's...
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Page 3: Identifying consumer insights and product needs - where to start?

Market research should start with the consumer and serves two purposes:1) To inform companies about consumer needs and desires. What are the trends in the market? What do consumers want?2) To give consumers the opportunity to talk to the providers of products and services so that their views are taken into account.Businesses exist in a fast-moving world with increased consumer choice. It is...
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Page 4: Turning consumer insights into product concepts

Consumers showed a need for a 'beautifying, caring deodorant'. The team generated ideas on how to address the consumer need.From these ideas the marketing team created 'product concepts'. These describe the product benefits and how they will meet the consumer needs. Several concepts were written in different ways. These explained and expressed unique product attributes.The company needed to know...
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Page 5: Testing the product, brand positioning and advertising

TestingThe stages described so far produced a product concept that consumers felt was relevant and which they were willing to buy. The next stage was to test the product on actual customers. Many product launches fail, despite great advertising. A big reason is because the product fails to live up to the promises made.The Market Research Team conducted a product usage test. A de-branded sample...
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Page 6: Conclusion

New product development should start with an insight based on consumer needs.Throughout the NPD process, market research is a valuable tool for Beiersdorf to check viability and minimise the risk of the product launches.Being an international company, it is essential that Beiersdorf develops new products using the insights of consumers across markets and cultures. This ensures the products are...
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